Movie exhibition company PVR Ltd has denied news reports that it is likely to acquire the Chennai-headquartered SPI Group that runs Sathyam Cinemas. In a regulatory filing to the stock exchanges today, PVR said, “as part of its continuing business strategy to look for growth opportunities, the company is constantly on the look-out for, and in discussions with, potential partners in various capacities to further its business.” The company is not aware of any negotiations or transactions with SPI Cinemas.
According to industry sources, PVR is close to acquiring SPI Cinemas that runs more than 40 screens in Chennai and Coimbatore. SPI Cinemas plans to add another 40-50 screens to its portfolio, and was weighing various options, including PE, to fund its expansion.
Swaroop Reddy, Director, SPI Cinemas, said, “I do not want to comment on this now.” Another leading player in the movie exhibition business said PVR is an asset-light company, and since Sathyam owns some of its screens, particularly the close to two-acre, six-screen property near Anna Salai in Chennai, PVR may not be in a position to fund the buy on its own.